Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
It is realized by both buyers and sellers that a property transaction is a substantial venture in terms of finances. Owing to this, most developers come up with numerous payment schemes to make the process more convenient and agreeable. This is where a flexi payment plan comes into the picture. It is one of the most popular and preferred payment schemes when it comes to real estate transactions.
In order to understand what a flexi payment plan entails, it is important to first comprehend the aspects of two other payment schemes namely the Down Payment Plan, and the Construction-Linked Payment Plan.
Down Payment Plan:This is a long-established payment plan opted by buyers and developers for years. Under this scheme, the buyers have to pay about 10-15% of the total cost of the property in question to the sellers upfront. This concludes the booking of the property in such a buyer name. Next, the buyer is supposed to make the payment for the remaining 80% within 30 days from the date of booking. Now, the outstanding 5% is payable at the time of possession of such property by the buyer.
Construction-Linked Payment Plan:This payment plan allows buyers to proceed with their payments with every step of construction work. This means that the buyers shall make a booking payment of about 10% at first and another payment of about 10-15% is payable over the next 30 days. Now, the owed balance amount can be paid by the buyer at every stage of construction work such as completion of the foundation, the first floor, the walls, etc.
Now, the Flexi Payment Plan is an ideal consolidation of both of these payment plans. This means that the flexi payment plan includes the finest facets of both the down payment and the construction-linked payment plans. With this payment scheme, the buyer gets a discount on the initial down payment and is allowed to make payments towards his EMI after he acquires possession of the property. The flexi payment plan conveniently helps the buyers save about 5-6% of their total estimated expenditure amount and hence is the most preferred payment plan in the field of real estate.
